REG - Hercules Site Svcs - Nuneaton Lease Agreement

Hercules Site ServicesAnnouncement

31/08/2022 07:01

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220831:nRSe6530Xa&default-theme=true

RNS Number : 6530X  Hercules Site Services PLC  31 August 2022

31 August 2022

 

Hercules Site Services plc

("Hercules" or the "Company")

 

Nuneaton Lease Agreement

 

Hercules Site Services plc (AIM: HERC), a leading technology enabled labour
supply company for the UK infrastructure sector, is pleased to announce that
it has entered into a lease agreement for an industrial site in Nuneaton in
the West Midlands (the "Lease Agreement"), circa 15 miles from the HS2 phase 1
(northern section) site.

 

Looking ahead to the medium term, it is expected that the Hercules Training
Academy will be constructed on the site. The aim of the training academy is to
reduce external training costs for the Company, to ensure high skill levels
and quality across the Hercules workforce, and to provide specific training
for clients across the infrastructure and construction industries (not just
limited to HS2). This will generate further income streams for the Company and
will also enable Hercules to provide training to upskill workers to fulfil
additional roles on client construction sites.

 

Hercules will initially utilise the site for storing plant, machinery and
suction excavators as the Company continues to supply labour for the
construction of HS2 phase 1 in the West Midlands area around Birmingham. With
Hercules headquartered in Cirencester, management believes that it can deliver
efficiencies and cost savings by locating this site near to the Company's
operations at the HS2 sites through reduced travel times and storage costs,
among other things.

 

In addition, the facility will be used by the Company's civil projects team to
service new fibre broadband work in the East Midlands region and for general
training purposes, whilst also providing a more northerly base for Hercules'
suction excavator business.

 

Under the terms of the Lease Agreement, the annual rent payable by Hercules is
£100,000 per annum and the lease term is for 18 years. This lease will be
shortened when construction of the training academy is completed, with rent to
be agreed at market rates. The site covers an area of circa 2,800 sq/meters of
yard space and industrial units.

 

The site is being leased from Hercules Real Estate Limited ("HRE"), a
substantial shareholder and related party of the Company. Brusk Korkmaz,
Hercules' Chief Executive Officer, is a director of HRE and the majority
shareholder. It is the intention of HRE to finance the construction of the
training academy and the planning process has already begun.

 

Henry Pitman, Non-Executive Chairman of Hercules, commented: "We are very
pleased to have entered into this agreement with HRE as it marks the first
step in the Company's stated strategy to develop a training academy to provide
much needed skills for the infrastructure sector in a bid to help tackle the
UK's skills shortage. We believe the site in the West Midlands will provide
the Company with an important base for the region and the north of England,
where Hercules is experiencing an increase in work across all business areas.
We look forward to providing further updates as this important project
progresses."

 

Related Party Transaction

 

The Lease Agreement is a related party transaction for the purposes of Rule 13
of the AIM Rules for Companies. The directors independent of the Lease
Agreement (being all directors except Brusk Korkmaz) consider, having
consulted with SP Angel Corporate Finance LLP, the Company's Nominated
Adviser, that the terms of the Lease Agreement are fair and reasonable in so
far as Hercules' shareholders are concerned.

 

For further information and enquiries, please contact:

 

 Hercules Site Services plc                                                             c/o SEC Newgate

 Brusk Korkmaz (CEO)

 Paul Wheatcroft (CFO)

 SP Angel (Nominated Adviser and Broker)                                           +44 (0) 20 3470 0470

 Matthew Johnson / Adam Cowl / Harry Davies-Ball (Corporate Finance)

 Grant Barker / Rob Rees (Sales and Broking)

 SEC Newgate (Financial PR)                                                       +44 (0) 20 3757 6882

 Elisabeth Cowell / Ian Silvera / Max Richardson                       Hercules@secnewgate.co.uk

 

About Hercules Site Services plc

 

Hercules is a leading tech enabled labour supply company for the UK
infrastructure sector. Founded in 2008, Hercules has an established track
record of profitability and fast-growth and has built a blue-chip customer
base which includes Balfour Beatty, Costain, Kier, Skanska, Dyer & Butler
and Volker Fitzpatrick. The Company has been appointed to provide labour for a
range of high-profile infrastructure projects, such as HS2, due to its agile,
innovative, digital first approach and complete service offering. It is
well-placed to benefit from any government increase in infrastructure spending
and its experienced management team has identified multiple opportunities for
growth.

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  AGRBKKBKABKDOFN